Back to top

Analyst Blog

Leading cleaning and sanitation products maker, Ecolab (ECL - Analyst Report) has been selected as the official hygiene supplier for the 2013 Universiade Games. Ecolab will provide its leading products and on-site services to local partners at the event.

Ecolab will be serving more than 100,000 athletes, volunteers and spectators visiting Kazan, Russia for this event. The partnership with Universiade Games will boost Ecolab’s brand name and help enhance its top line considerably.

The Minn.-based company reported revenue growth of 2% in the first quarter of 2013. The Zacks Consensus Estimate for 2013 revenues is pegged at $13,482 million, which represents a 14% hike over 2012 revenues.

Ecolab serves the foodservice, food and beverage processing, healthcare and hospitality markets across the globe. We are impressed by Ecolab’s consistent double-digit earnings growth despite the current challenging business environment. The company remains focused on introducing new technologies into the market.

Based on its history of robust growth, Ecolab is poised to gain momentum via its aggressive strategy of pursuing acquisitions. Ecolab acquired Champion Technologies to become a giant in the oilfield chemical business and reduce competition for its Nalco subsidiary.

Though multiple acquisitions have expanded Ecolab’s product range, we remain concerned about the acquisition and integration-related risks. Difficult economic trends, currency fluctuations, higher raw material prices, product delivery costs and pension costs also remain headwinds.

Ecolab currently has a Zacks Rank #3 (Hold). Other companies from the basic materials industry such as OM Group (OMG - Snapshot Report), KapStone Paper and Packaging (KS - Snapshot Report) and Westlake Chemical (WLK - Snapshot Report) warrant a look. All these stocks carry Zacks Rank #1 (Strong Buy)

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.55 +11.64%
CHINA BIOLO… CBPO 55.57 +7.40%
BITAUTO HOL… BITA 96.14 +5.58%
LUXOFT HOLD… LXFT 38.77 +3.64%
INSITE VISI… INSV 0.30 +3.41%